HomeMy WebLinkAbout05.Z- Public Works RESOLUTION (ID # 2978) DOC ID: 2978 H
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Purchase Order
From: David Wixom M/CC Meeting Date: 07/07/2014
Prepared by: David Wixom, (909) 384-5220
Dept: Public Works Ward(s): All
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Authorizing the
Execution of an Agreement and Issuance of an Annual Purchase Order in the Amount of
$116,000 with Two Single-Year Renewals at the City's Option to Fairview Ford Sales, Inc. of
San Bernardino for Vehicle Parts and Supplies. (#2978)
Current Business Registration Certificate: Yes
Financial Impact:
Budgeted Account Number: 635-400-0100-5111 (Materials and Supplies)
Budgeted Amount: $1,182,300
Balance as of May 5, 2014 $126,473.03
Balance after approval of this item: $10,473.03
Please note this balance does not indicate available funding. It does not include non-encumbered
reccurring expenses or expenses incurred,but not yet processed.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
06/17/13 Resolution No. 2013-115 was approved authorizing issuance of an Annual Purchase
Order in the amount of$116,000 to Fairview Ford Sales, Inc. of San Bernardino for
specific Ford parts and supplies to support the City's Light and Heavy Vehicle Fleet.
08/18/09 Resolution No. 2009-296 was approved authorizing an Agreement and issuance of an
Annual Purchase Order in the amount of$116,000, pursuant to section 3.04.010-133
of the Municipal Code with three single-year renewal options to Fairview Ford Sales,
Inc. of San Bernardino for specific Ford parts and supplies.
Background:
The City's fleet contains over 300 pieces of equipment that use Ford Motor products. Generally,
Ford dealerships tend to offer competitive pricing for parts and services. However, Fairview
Ford is the only Ford dealership within the City limits of San Bernardino that maintains a level
of inventory sufficient enough to support the City of San Bernardino Fleet Management
Division's parts requirements.
The Public Works Department, Fleet Management Division staff is requesting a select source
annual purchase order,for a total amount not to exceed$116,000 for fiscal year 201412015 with
Updated:6/24/2014 by Georgeann"Gigi"Hanna H Packet Pg. 672
2978
two single year renewals at the City's option to Fairview Ford Sales, Inc. of San Bernardino for
vehicle parts and supplies.
City Attorney Review:
Supporting Documents:
reso 2978 (PDF)
agrmt 2978 (PDF)
Fairview Ford Discount Ltr. (PDF)
Fairview Ford Select Source Memo 2014 (PDF)
Updated: 6/24/2014 by Georgeann"Gigi"Hanna H
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RESOLUTION NO.
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2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT
3 AND ISSUANCE OF AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF
4 $116,000 WITH TWO SINGLE-YEAR RENEWALS AT THE CITY'S OPTION TO
FAIRVIEW FORD SALES, INC. OF SAN BERNARDINO FOR VEHICLE PARTS
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AND SUPPLIES.
6 WHEREAS, Fairview Ford Sales, Inc. is the only authorized dealership for factory
7 Ford parts in the City of San Bernardino.
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BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
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CITY OF SAN BERNARDINO AS FOLLOWS: °
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11 SECTION 1. The City Manager of the City of San Bernardino is hereby authorized to
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12 execute on behalf of said City an Agreement between the City of San Bernardino and
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Fairview Ford, Inc., a copy of which is attached hereto, marked as Exhibit "A", and a
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incorporated herein by this reference as fully set forth at length. _
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SECTION 2. That pursuant to this determination the Director of Administrative
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Services or designee is hereby authorized to issue an Annual Purchase Order to Fairview Ford
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18 for a total amount not to exceed $116,000. o
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19 SECTION 3. The Purchase Order shall reference this Resolution Number and shall y
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20 read, "for Ford manufactured parts and service, $116,000 for FY 2014-15" and shall
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incorporate the terms and conditions of the agreement. Q
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23 SECTION 4. The authorization to execute the above-referenced Purchase Order and
24 Agreement is rescinded if it is not executed by both parties within sixty (60) days of the
25 passage of this resolution.
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I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AUTHORIZING THE EXECUTION OF AN AGREEMENT
2 AND ISSUANCE OF AN ANNUAL PURCHASE ORDER IN THE AMOUNT OF
$116,000 WITH TWO SINGLE-YEAR RENEWALS AT THE CITY'S OPTION TO
3 FAIRVIEW FORD SALES, INC. OF SAN BERNARDINO FOR VEHICLE PARTS
4 AND SUPPLIES.
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
6 and Common Council of the City of San Bernardino at a meeting thereof,held
7 on the day of , 2014, by the following vote,to wit:
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9 Council Members: AYES NAYS ABSTAIN ABSENT a.
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10 MARQUEZ
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11 BARRIOS
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SHORETT a.
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MULVIHILL
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Georgeann Hanna, City Clerk
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21 The foregoing resolution is hereby approved this day of a
22 12014.
23
R. CAREY DAVIS, Mayor
24 City of San Bernardino
25 Approved as to Form:
GARY D. SAENZ, City Attorney
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27 By:
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VENDOR SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO
AND FAIRVIEW FORD SALES INCORPORATED FOR PARTS AND SERVICES
This Vendor Service Agreement is entered into this 7th day of July 2014, by and
between Fairview Ford Sales Incorporated ("VENDOR") and the City of San Bernardino
("CITY"or"San Bernardino").
WITNESSETH:
WHEREAS, the Mayor and Common Council has determined that it is advantageous
and in the best interest of the CITY to contract for specific Ford manufactured parts and
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services for the City's light and heavy vehicles; and 0
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WHEREAS, the Vendor is the only authorized local dealer to provide said services to tv
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City; and, N
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WHEREAS,this new Agreement supersedes all previous Agreements with the vendor; 2
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NOW,THEREFORE, the parties hereto agree as follows:
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1. SCOPE OF SERVICES.
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For the remuneration stipulated in Section 2, San Bernardino hereby engages the ==
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services of VENDOR to provide specific Ford manufactured parts and services for the City's N
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light and heavy vehicles. Pricing is dealer cost plus 10 percent. All pricing is based on the
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current Ford Motor Company price list in effect at the time of purchase as per Attachment"l,"
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a copy of which is attached hereto and incorporated by this reference. a
2. COMPENSATION AND EXPENSES.
a. For the services delineated above, the CITY, upon presentation of an invoice, shall
pay the VENDOR, up to the amount of$116,000.00 for specific Ford manufactured
parts and service for the City's light and heavy vehicles.
b. No other expenditures made by VENDOR shall be reimbursed by CITY.
Exhibit"A"
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3. TERM; TERMINATION.
The term of this agreement shall be from July 7, 2014 through June 30, 2015, with two
(2) one-year extensions at the City's option. Option year one, if exercised, shall be effective
July 1, 2015 through June 30, 2016. Option year two, if exercised, shall be effective July 1,
2016 through June 30, 2017.
This Agreement may be terminated at any time by thirty (30) days prior written notice
by either party. The terms of this Agreement shall remain in force unless amended by written
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agreement of the parties executed on or before date of expiration of current term of the ;
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agreement. O
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4. WARRAN'T'Y
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Vendor expressly warrants that all products and services supplied to City by Vendor under
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this Agreement shall conform to the specifications, drawings or other description upon which Q
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this purchase is based, shall be fit and sufficient for the purpose intended, merchantable, of N
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good material and workmanship, free from defects and fee and clear of all liens or N
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encumbrances. inspection, testing, acceptance or use of the goods by the City shall not affect M
Vendor's obligations under this warranty, and such warranty shall survive inspection, testing,
acceptance and use. Vendor agrees to replace or correct promptly defects of any goods or r
services not conforming to the foregoing warranty without expense to the City, when notified
of such non-conformity by City. If Vendor fails to correct the defects in or replace non-
conforming goods or services promptly, City may, after reasonable notice to Vendor, make
such corrections or effect cover, or cure, at Vendor's expense. "Reasonable notice" for
purposes of this section shall not be deemed to require more than 60 calendars days notice
Exhibit"A"
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before commencement of efforts by the City to effect cover or a cure except upon written
agreement of the Parties.
5. INDEMNITY.
Vendor agrees to and shall indemnify and hold the City, its elected officials, employees,
agents or representatives, free and harmless from all claims, actions, damages and liabilities of
any kind and nature arising from bodily injury, including death, or property damage, based or
asserted upon any or alleged act or omission of Vendor, its employees, agents, or
subcontractors, relating to or in any way connected with the accomplishment of the work or "a
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performance of service under this Agreement, unless the bodily injury or property damage was
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actually caused by the sole negligence of the City, its elected officials, employees, agents or o
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representatives. As part of the foregoing indemnity, Vendor agrees to protect and defend at its
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own expense, including attorney's fees the City, its elected officials, employees, agents or a.
representatives from any and all legal actions based upon such actual or alleged acts or a
omissions. Vendor hereby waives any and all rights to any types of express or implie; o)
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indemnity against the City, its elected officials, employees, agents or representatives, wig a
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respect to third party claims against the Vendor relating to or in any way connected. with the E
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accomplishment of the work or performance of services under this Agreement.
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6. INSURANCE.
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While not restricting or limiting the foregoing, during the term of this Agreement, Q
VENDOR shall maintain in effect policies of comprehensive public, general and automobile
liability insurance, in the amount of $1,000,000.00 combined single limit, and statutory
worker's compensation coverage, and shall file copies of said policies with the CITY's Risb
Manager prior to undertaking any work under this Agreement. CITY shall be set forth as ar
additional named insured in each policy of insurance provided hereunder. The Certificate o:
Exhibit"A"
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Insurance furnished to the CITY shall require the insurer to notify CITY of any change or
termination in the policy.
7. NON-DISCRIMINATION.
In the performance of this Agreement and in the hiring and recruitment of employees,
VENDOR shall not engage in, nor permit its officers, employees or agents to engage in,
discrimination in employment of persons because of their race, religion, color, national origin,
ancestry, age, mental or physical disability, medical conditions, marital status, sexual gender or
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sexual orientation, or any other status protected by law. 20
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8. INDEPENDENT CONTRACTOR.
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VENDOR shall perform work tasks provided by this Agreement, but for all intents anc
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purposes VENDOR shall be an independent contractor and not an agent or employee of the U
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CITY. VENDOR shall secure, at its expense, and be responsible for any and all payment of a
Income Tax, Social Security, State Disability Insurance Compensation, Unemployment a
Compensation, and other payroll deductions for VENDOR and its officers, agents, anc
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employees, and all business licenses, if any are required, in connection with the services to be
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performed hereunder. E
9. BUSINESS REGISTRATION CERTIFICATE AND OTHER REQUIREMENTS.
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VENDOR warrants that it possesses or shall obtain, and maintain a business registration 0
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certificate pursuant to Chapter 5 of the Municipal Code, and any other licenses, permits a
qualifications, insurance and approval of whatever nature that are legally required of VENDOp
to practice its business or profession.
10. NOTICES.
Any notices to be given pursuant to this Agreement shall be deposited with the Unite(
States Postal Service, postage prepaid and addressed as follows:
Exhibit"A"
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TO THE CITY: Public Services Director
300 North"D" Street
San Bernardino, CA 92418
Telephone: (909) 384-5140
TO THE VENDOR: Fairview Ford Sales Incorporated
PO Box 5516
San Bernardino, CA 92412
Telephone: (909) 386-0281
Contact: Craig Stan Macklin
11. ATTORNEYS' FEES.
In the event that litigation is brought by any party in connection with this Agreement, a
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the prevailing party shall be entitled to recover from the opposing party all costs and expenses, U-
including reasonable attorneys' fees, incurred by the prevailing party in the exercise of any of
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its rights or remedies hereunder or the enforcement of any of the terms, conditions or
provisions hereof. The costs, salary and expenses of the City Attorney and members of his
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office in enforcing this Agreement on behalf of the CITY shall be considered as "attorneys'
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fees" for the purposes of this paragraph. co
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12. ASSIGNMENT.
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VENDOR shall not voluntarily or by operation of law assign, transfer, sublet or C
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encumber all or any part of the VENDOR's interest in this Agreement without CITY's prior M
written consent. Any attempted assignment, transfer, subletting or encumbrance shall be void E
and shall constitute a breach of this Agreement and cause for the termination of this a
Agreement. Regardless of CITY's consent,no subletting or assignment shall release VENDOR
of VENDOR's obligation to perform all other obligations to be performed by VENDOR
hereunder for the term of this Agreement.
13.VENUE.
The parties hereto agree that all actions or proceedings arising in connection with this
Agreement shall be tried and litigated either in the State courts located in the County of San
Exhibit"A"
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Bernardino, State of California or the U.S. District Court for the Central District of California,
Riverside Division. The aforementioned choice of venue is intended by the parties to be
mandatory and not permissive in nature.
14. GOVERNING LAW.
This Agreement shall be governed by the laws of the State of California.
15. SUCCESSORS AND ASSIGNS.
This Agreement shall be binding on and inure to the benefit of the parties to this Agreement 7
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and their respective heirs,representatives, successors, and assigns.
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16. HEADINGS.
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The subject headings of the sections of this Agreement are included for the purposes of p
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convenience only and shall not affect the construction or the interpretation of any of its
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provisions.
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17. SEVERABILITY. a
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If any provision of this Agreement is determined by a court of competent jurisdiction to
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be invalid or unenforceable for any reason, such determination shall not affect the validity or rn
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enforceability of the remaining terms and provisions hereof or of the offending provision in any E
other circumstance, and the remaining provisions of this Agreement shall remain in full force
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and effect. U
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18. ENTIRE AGREEMENT; MODIFICATION.
This Agreement constitutes the entire agreement and the understanding between the
parties, and supercedes any prior agreements and understandings relating to the subject manner
of this Agreement. This Agreement may be modified or amended only by a written instrument
executed by all parties to this Agreement.
Exhibit"A"
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VENDOR SERVICE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO
AND FAIRVIEW FORD SALES INCORPORATED FOR PARTS AND SERVICES
IN WITNESS THEREOF,the parties hereto have executed this Agreement on the day and
date set forth below.
Dated: ,2014 VENDOR.
By:
Its:
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Dated , 2014 CITY OF SAN BERNARDINO
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Allen J. Parker, City Manager
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Approved as to Form:
Gary D. Saenz, City Attorney °"
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Exhibit"A"
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03-18-'14 12;46 TO- 3845013 FROM- Fairview Ford Parts P0003/0003 T-
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Fairview Ford Sales, Inc.
P.O.Box 3516
,,,✓ SAN BERNARDINO,CALIF.82412 =
Telephone(909)884-9261
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To: City of San Bernardino -�
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Attn. Paul
Fairview Ford accepts the$%discount.:reopct ort and has changed your account to reflect
so. We are all in the same position and hopefully this will help you make it through these . .
tough times. This applies only to over the count purchases from the Parts Department, �
We hope to continue doing business with the City of San Bernardino and look forward to
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Sincerely,
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Don Barman °
Parts Manager o
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Agreement from 2009.
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CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
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, Sa TO: Purchasing Division
FROM: David Wixom
DATE: March 5, 2014 t
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SUBJECT: Justification of a Selected Source Purchase for: The purchase of Factory and
specific Ford parts and renewal of Purchase Order 2014-190. "-
Definition:A purchase of a commodity or service without obtaining competitive bids, although more
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than one source is available. o
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A Selected Source purchase for Fairview Ford Sales Incorporated is justified because... a.
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1. Fairview Ford Sales Incorporated is the only local Ford dealership in the City of San Bernardino
that maintains sufficient parts inventories to support the City's fleet operations. v°
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2. They specialize in Police Interceptor parts to support the City's Police o
Department. E
3. Fairview Ford Sales discount schedule exceeds the City's request for a 5 percent discount. Staf
currently receives dealer cost plus 10 percent. All pricing is based on the current Ford Moto 0
Company price list in effect at the time of purchase. Cn
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X dte. (Print Name)_ DIW40 W/AD M
Department Head (or Designee) Signature U-
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New Requisition # U
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Revised 01104/10 drm
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